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May 25, 2006

White House, lawmakers cite Skilling, Lay verdicts

by Sam Savage

WASHINGTON (Reuters) - The Bush administration and U.S.
lawmakers said on Thursday the guilty verdicts against former
Enron Corp. chief executives Kenneth Lay and Jeffrey Skilling
sent a strong message on corporate corruption.

"We congratulate the (U.S.) Justice Department on
successfully concluding a highly complex legal proceeding that
led to the convictions," White House spokesman Tony Snow said.

"The administration has been pretty clear there's no
tolerance for corporate corruption and, furthermore, the
Justice Department has been going aggressively after those who
are involved in corporate corruption," Snow said.

Lay and Skilling were found guilty in Houston on Thursday
of lying about their company's crumbling finances in one of the
biggest U.S. business scandals and could face years in prison.

"Justice has been served today. The jury's verdicts help to
close a notorious chapter in the history of America's publicly
traded companies," said Rep. Michael Oxley, the Ohio Republican
who co-authored the Sarbanes-Oxley corporate reforms.

The 2002 reforms were triggered in part by the implosion of
Enron, which rocked U.S. investor confidence.

"Sarbanes-Oxley, as well as today's verdicts, should remind
us all of companies' obligations to shareholders, employees,
and retirees," Oxley said in a statement.

Alabama Republican Richard Shelby, chairman of the Senate
Banking Committee which oversees financial matters, said,
"Today's verdict in the Enron case demonstrates that the type
of fraud and criminal behavior engaged in by the executives at
the company will not be tolerated in our markets."